Vietnam boosts semiconductor industry with major support policy

Semiconductor chip manufacturing in Vietnam – Photo: Quynh Nga

National Assembly Chairman Tran Thanh Man has recently signed and issued Resolution 193/2025/QH15, introducing special mechanisms and policies aimed at driving breakthroughs in science, technology, innovation, and digital transformation.

A key highlight of this resolution is the financial support policy for the construction of Vietnam’s first semiconductor chip manufacturing plant dedicated to research, training, and production.

Vietnamese enterprises selected to invest in the first semiconductor chip plant for small-scale, high-tech chip fabrication to serve research, training, design, prototyping, technology verification, and specialized chip production will receive financial support directly from the central budget, equivalent to 30 percent of the project’s total investment if the factory is operational by December 31, 2030. The maximum support is VND10 trillion.

During project preparation and implementation, enterprises can allocate 10-20 percent of their taxable income annually to their Science and Technology Development Fund to supplement the project, with the total allocation not exceeding the project’s total investment.

According to the Ministry of Information and Communications (MIC), Vietnam’s semiconductor industry revenue reached US$18.7 billion in 2024, with around 50 chip design firms and 6,000 design engineers.

Vietnam is considered to have geopolitical and workforce advantages in the semiconductor industry. This presents opportunities for Vietnam to integrate more deeply into the global semiconductor supply chain.

Vietnam is located at the center of a region that accounts for up to 70 percent of global semiconductor production. It is a country with a stable political environment, among the fastest-growing economies, and has strategic partnerships with many semiconductor powerhouses.

Additionally, Vietnam is one of the countries with the highest number of FTAs worldwide and is among the leading nations in global trade growth, creating favorable conditions for the export of electronic products in general and semiconductor chips in particular.

Moreover, Vietnam has significant potential in rare earth reserves, estimated at around 20 million tonnes. It is also one of the 16 most populous countries in the world, with a young population and a strong STEM-skilled workforce (science, technology, engineering, and mathematics), capable of quickly meeting the labor demands for the development of the semiconductor industry.

Nguyen Khac Lich, General Director of the MIC’s Authority of ICT Industry and Communications, stated that as the world witnesses rapid growth in industries, such as electric vehicles, telecommunications, cloud computing, and artificial intelligence (AI), the semiconductor industry is expected to continue its strong expansion, with the projected revenue reaching US$1 trillion by 2030.

This boom creates significant opportunities for many countries to develop the semiconductor industry, offering developing nations a chance to restructure and enhance the efficiency of their semiconductor sector development.

“Vietnam has the opportunity to become one of the global semiconductor and electronics hubs thanks to key factors, including its unique geopolitical advantages, its status as a safe investment destination, and its strong potential for semiconductor industry development compared to some countries in the region. This is a great opportunity for Vietnam to integrate more deeply into the global semiconductor and electronics supply chain,” Nguyen Khac Lich said.